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Drivers are avoiding making claims on their insurance for accident damage, according to motortradesinsight.co.uk. New research has shown that around one million motorists are driving in damaged vehicles.

High insurance premiums are thought to be a reason why drivers aren't reporting accidents to their insurance companies, as the running costs of a car have continued to increase.

Steve Evans, CEO of Accident Exchange, which commissioned the research, said: "The double whammy impact of losing their No Claims Discounts and paying increased excesses on insurance claims has seen the number of private settlements between fault and non-fault drivers rise.

"The innocent party is then choosing to pocket the money rather than seeking to repair what they merely see as cosmetic damage."

Trendtracker.co.uk reported that the number of insurance-funded repairs to accident-damaged cars had dropped, in part due to lower vehicle use, but also because of rising insurance premiums. However having a car tracking system fitted to their vehicle may help to lower insurance renewal prices, as some insurers might ask if a car has a tracker.

Some motorists are choosing to opt for a very high excess in a bid to drive down premiums but a study by AXA showed a third of motorists cannot afford to pay the excess agreed on their policy.